What is Input-Output Model?

A definition of Input-Output Model

“An input-output model is a quantitative economic technique that represents the interdependencies between different sectors of a national economy or different regional economies.”

Input-Output Model in Business Glossary - What is an Input-Output Model?

Business Glossary > What is Input-Output Model?


Examples of Input-Output Model in a Sentence:

An input-output model can help analyze economic impacts across sectors.

Economists use the input-output model to forecast systemic changes.

Understanding the input-output model helps in regional economic planning.

Why is Input-Output Model Important in Business?

The input-output model is crucial for understanding how changes in one sector of the economy can impact others and the economy as a whole. It assists governments and businesses in making data-driven decisions on economic policies and investments.

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Associated Terms

Here are some associated business terms and synonyms for “Input-Output Model”:

  • Economic Model
  • Interindustry Model
  • I-O Model

Example of an Input-Output Model in Use

General Motors utilizes input-output models to understand how a recession in one sector may affect their supply chain and operations, enabling strategic adjustments and minimizing potential negative impacts.

Final Notes on Input-Output Model

When utilizing an input-output model, analysts should consider the intersectoral dependencies and potential feedback loops that can amplify the effects of economic shocks.


This has been a definition of Input-Output Model meaning.

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